TSX Today: What to Watch for in Stocks on Wednesday, January 25

TSX investors may want to keep a close eye on the Bank of Canada’s monetary policy event today.

| More on:
tsx today

The Canadian stock market remained volatile on Tuesday, as investors awaited the Bank of Canada’s interest rate decision. After falling by 129 points from its previous closing during the intraday trading yesterday, a recovery in metal and mining stocks later during the volatile session helped the S&P/TSX Composite Index settle at 20,630 with just two points drop for the day.

Despite gains in mining and consumer non-cyclicals market sectors, big declines in the shares of energy and consumer cyclicals companies pressured the TSX benchmark on January 24.

Top TSX Composite movers and active stocks

Shares of Magna International (TSX:MG) plunged by 7.2% to settle at $81.25 per share, making it the worst-performing TSX Composite component for the day.

This selloff in MG stock came after the Aurora-headquartered automotive supplier updated its 2022 outlook to reflect preliminary results for the year. Magna told investors that its 2022 adjusted EBIT (earnings before interest and taxes) margin stood at 4.3% based on the preliminary results, missing its guided range of 4.8% to 5%. The company blamed various factors, including higher labour costs and other operational inefficiencies, for its weak EBIT margin. After this selloff, MG stock now trades with 6.8% gains in January after losing nearly 26% of its value last year.

Ritchie Bros Auctioneers, Vermilion Energy, and Cronos Group were also among the worst-performing Canadian stocks yesterday, as they slipped by at least 3.5% each.

On the positive side, Interfor, Brookfield Business Partners, West Fraser Timber, and Equinox Gold climbed by at least 2.5% each, making them the top performers on the Toronto Stock Exchange.

Based on their daily trade volume, Enbridge, Manulife Financial, Shaw Communications, and Tourmaline Oil were the most active stocks for the day.

TSX today

Commodity prices across the board were trading on a weak note early Wednesday morning, which could take the resource-heavy TSX index lower at the open today. The Canadian central bank is set to announce its latest interest rate decision and release the monetary policy report this morning, which should give further direction to stocks. Besides that, energy investors may also want to keep a close eye on the weekly crude oil stockpiles data from the U.S. market.

On the corporate events front, gold miner NovaGold Resources will release its 2022 earnings reports after the market closing bell on January 25.

Market movers on the TSX today

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

The Motley Fool recommends Enbridge, Magna International, Ritchie Bros. Auctioneers, Vermilion Energy, and West Fraser Timber. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Metals and Mining Stocks

todder holds a gold bar
Metals and Mining Stocks

1 Gold Mining Stock That’s My Inflation Protection Play

Agnico Eagle Mines stock has generated inflation-beating returns over the past decade, and the gold stock retains strong growth momentum

Read more »

space ship model takes off
Metals and Mining Stocks

Where Will Barrick Gold Be in 3 Years?

Let's dive into the three year outlook for Barrick Gold (TSX:ABX), a top global player in the increasingly competitive precious…

Read more »

A plant grows from coins.
Metals and Mining Stocks

2 Mining Stocks That Are Screaming Buys in June

Rising metal prices are lifting many mining stocks, but these two companies could still deliver big gains from here.

Read more »

Super sized rock trucks take a load of platinum rich rock into the crusher.
Metals and Mining Stocks

2 Mining Stocks I’d Buy With $7,500 Whenever They Dip in Price

Here's why any price dips on Cameco stock and another large-cap mining stock should be lucrative buying opportunities over the…

Read more »

money goes up and down in balance
Dividend Stocks

2 Incredibly Cheap Growth Stocks to Buy Now

These two growth stocks are both unbelievably cheap and have significant long-term potential, making them some of the best to…

Read more »

nugget gold
Metals and Mining Stocks

Going for Gold? How the Precious Metal Stocks, ETFs, and Funds Stack Up

With uncertainty in the economy continuing to drive the price of gold higher, here are the best stocks to buy…

Read more »

A child pretends to blast off into space.
Stocks for Beginners

Want $549 in Annual Income? Invest $7,000 in This Stock in a TFSA

If you're looking to create some long-term growth, then certainly consider this top dividend stock offering monthly income.

Read more »

space ship model takes off
Metals and Mining Stocks

Meet the Monster Stock That Continues to Crush the Market

Soaring gold demand amid tensions worldwide offers the tailwinds that this TSX gold stock needs to deliver market-beating returns, and…

Read more »